Accessibility Links

GDP growth spike raises contribution to EU

The presence in Ireland of large multinationals such as Apple with complex tax arrangements distorts reporting of the Irish economyPAUL FAITH/AFP/Getty Images

The €1 billion available for tax cuts and spending increases in October’s budget will not be affected by the government’s increased contribution to the EU budget, Michael Noonan has said.

It emerged yesterday that the government would have to increase its contribution to next year’s EU budget by €280 million after last week’s revision of Ireland’s GDP growth figure for last year to 26 per cent by the Central Statistics Office (CSO).

Mr Noonan told Michael McGrath, the Fianna Fail finance spokesman, in a reply to a parliamentary question, that the original estimate was an increased contribution of €380 million but “mitigating factors” had reduced this by €100 million.

The finance minister also said that it would not affect the “fiscal space available for October’s…

Want to read more?

Subscribe now and get unlimited digital access on web and our smartphone and tablet apps, free for your first month.